Investment companies in South Africa – are you currently in search for a great company that you can work with to invest your lump-sum of money that you have?
There are currently many people who have retired, setting with their pension funds, and looking for an opportunity to grow their money.
People are very skeptical lately because there are so many entities which are out there, taking people’s hard worked money in the name of investments, network marketing, so on and so forth.
Although there are some great investment channels which can be trusted like crypto currency, Bitcoin etc and Forex trading, injecting cash in one of the best investment companies in South Africa is one the other channels that one can look at.
One of the reasons why we have written this article is to help people understand what an investment company is and how it can assist you make the most out of your money.
What is an Investment Company?
An investment firm is a partnership between group of people that will draw money from shareholders and multiply it by putting it in various secured instruments.
The overall purpose of investing your money through this firms is because their job is to analyse and manage securities for your investment.
Best Investment companies in South Africa will also provide investment products to the public and may offer tax and accounting, record keeping portfolio management services.
How Does Investment Companies Make Profit?
So, Investment firm will make profit from buying and selling shares, properties, bonds, and other assets collected through the money of investors.
These assets can either be from the international market or maybe even local market, depending on the investment profile of the company.
Top 10 Investment Companies in South Africa
- Allan Gray
- Safrika Holdings
- IFM iTransact Fund Managers
- Mineworkers Investment Corporate
- Thebe Investment Coronation
- African Rainbow Capital
- Richmark Holdings
How Do Investment Entities Work?
Here are 8 top factors of how investment companies are structured and being operated.
Stock Exchange Listed – for the firm to be active and operational, they need to be listed on the stock exchange. The investment firm is not limited to one stock exchange but can be listed on multiple stock exchanges.
Board of Directors – All management companies have independent board of directors which exists to take responsibility of protecting the interest of the investors.
These directors will meet frequently to review and assess the performance of the investment company in the interest of investors and ensure that the firm is profitable.
Multiple Share Classes – So, depending on the profit share rules of that investment companies in South Africa available, they can either issue ordinary share or if it is a split capital investment company.
Fund Management – Fund managers are selected by board of directors which one of their responsibilities.
The major responsibility of fund managers to oversee all the funds, what could be done to increase the current investment.
The firm’s fund managers are usually part of the external management group, deployed to function within a certain investment management company.
You can think of fund managers as and external bookkeeping or an accounting company functioning as a standalone entity outside the investment firm itself.
Selective Investment – Financial firms are entitled to decide where they want to invest their stakeholder’s funds.
They can choose to invest in various sectors, global companies or even invest in a certain geographic region.
Shareholder Rights – by buying shares in best investment companies in South Africa, the shareholder receives certain rights which can be exercised as and when the need arises.
The shareholders can participate in yearly board members meetings, change the board of directors, motion tables and motion extraordinary general meetings.
Investing your lumpsum of money provides you with ease that your money is safely handled by a team of professionals that knows everything about increasing your wealth. Growing your portfolio by yourself can be a very stressful process and thus using professionals can leave you rest assured that you will have you return on investment.